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This N.L. woman saw the price of her oil bill and decided it was cheaper to move

Ashley Sheppard and her roommates calculated filling their furnace oil tank every month would cost over $650 a month.

Being able to afford everything seems impossible, says Ashley Sheppard

A woman with long, red hair and glasses sits on a recliner.
Ashley Sheppard of St. John's made the tough decision to leave her home of three years in search of more affordable housing after the price of oil skyrocketed. (Alex Kennedy/CBC)

Ashley Sheppard of St. John's thought the home she was renting with her three roommates would be where she stayed until she could afford her own home.

Then she experienced thispast Newfoundland and Labrador winter, paired with the price of home heating fuels going through the roof.

"Our most expensive oil bill was about, I think, just under $1,200," Sheppard saidMonday.

"We did the math, and it worked out that if we [filled our tank and] had paid it in instalments, once a month for 12 months of the year, it would have been $650 a month."

Sheppard, 24, has lived in the home for three yearsbut said it has become unaffordable when factoring in the cost of heating and rent. As a result, she decided to move this week, andsigned a lease for a place she can afford.

"None of us could have expected the significant difference in the cost of our oil over the last year. I think it was shocking to all of us even though we anticipated that it wasn't going to remain the same," she said.

"And to hear that it's going to continue to grow, it just made staying here completely unsustainable for us."

The implementation of the federal carbon tax is set to dramatically increase the price of home heating fuels in Newfoundland and Labrador.

A grey home heating oil tank next to house with bright red siding.
Oil tanks like this one have become more expensive to fill after the federal government's new carbon pricing benchmark kicked in. (Jeremy Eaton/CBC)

In June, Finance Minister Siobhan Coady said the tax will raise the price of furnace oil by 17 cents per litre and by45 cents per litre by 2030.

Sheppard says that number terrifies herand was a key factor in her decision to seek more affordable housing.

"It's really discouraging when you're an adult whoshould be financially stable in the situationthat they're in, and they're in a situation where they're renting with two other people splitting utilities, splitting rent and still unsure if they can make it work," she said.

"You factor in all these expenses skyrocketing, it just feels like such an impossible situation."

'It's really slim pickings'

Sheppard knows her struggle, as someone with a roof over her head and a good career, signals an even greater impact onthose on lower-level or fixed incomes.

Jade Kearley, a board member of the Newfoundland and Labrador Housing and Homelessness Network in Corner Brook, says she's heard of many suffering due to the ballooning cost of living.

"We had a lot of individuals that have reached out and said [they're] unable to pay the minimum amount that is needed to get the oil refuelled in their tank," Kearley said earlier this month.

"They're having to stretch their dollars even further. The cost of oil, of course, [is] going up, and that means that then they are not having as much money to pay for groceries or extracurricular activities."

A woman with short blonde hair stands in front of a cabinet.
Jade Kearley is a member of the Newfoundland and Labrador Housing and Homelessness Network in Corner Brook. (Alex Kennedy/CBC)

A study done by the network using data gathered from early 2020 to April 2022listed the average rent in the Corner Brook area at $776 a monthand nearly $1,000 a month when accounting for utilities.

That figure has since risen, Kearley said, and is paired with an incredibly tough rentalmarket.

"It's really slim pickings at the moment. If you have decent income you have a better chance, but at the same time the minimum is $1,000, $1,200. There was a three-bedroom house for $2,200 a month." she said.

The Newfoundland and Labrador government has offered incentives for homeowners to make the switch from oil to electric heating.

However, Kearley saysit isn't designed to help landlords and tenants because it's only available to those who own their home.

Landlords also aren't the ones paying the utility bill, Kearley added, which likely doesn't offer an incentive to undertake the change.

"For landlords that have multiple units, there's probably no incentive for them to want to make it better for their tenants," she said.

A screenshot from a website. The top half reads says the website is accepting applications, followed by an eligibility question reading 'Do you own your home?' The box is checked 'No', prompting a message in red text that reads 'This incentive only applies to homeowners.'
Take Charge Newfoundland and Labrador and the provincial government have introduced incentives for homeowners to transition from oil to electric heating, but it's available only to people who own their own home. (takechargenl.ca)

The increase in the cost of heating and the cost of living highlights the need for more affordable housing in the province, says Sheppard,and the provincial government needs to make more of a commitment to it.

"All I know is that people really need homes, and they need affordable homes. They need to be able to have a roof over their head and not worry about whether or not their pipes are going to freeze in the wintertime," Sheppard said.

"While I agree that we should be moving away from oil I don't think the burden ofthat should be on low-income and lower-middle-class people. I don't think they should have to foot the bill for that transition."

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